Inflation Isn’t What You Want it to Be, It’s a Shrinkage of the Dollar

by John Tamny
Forbes

Inflation is all over the news and commentary today, particularly after a presidential election that was allegedly all about it. The problem remains that few who utter the word grasp its singular meaning.

This includes Stanford professor Jennifer Burns, who not-so-ironically wrote a book about Milton Friedman. Friedman had his own problems with the definition given his view that increases in so-called “money supply” that he somehow knew the non-inflationary quantity of was “always and everywhere” evidence of inflation.

In Burn’s case, a recent opinion piece for the Wall Street Journal indicates she wants inflation to be different things at different times. Quoting Keynes and his classic line about debauching the currency as the best way to overturn ‘”the existing basis of society,”’ Burns happened on the correct – and yes – non Friedman-ite view of inflation: a shrinkage of the unit.

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